Archive for July, 2006

So Big and Healthy Grandpa Wouldn’t Even Know You

Posted on July 31, 2006 by Jason

The New York Times, July 30th, 2006

Valentin Keller enlisted in an all-German unit of the Union Army in Hamilton,
Ohio, in 1862. He was 26, a small, slender man, 5 feet 4 inches tall, who had
just become a naturalized citizen. He listed his occupation as tailor.

A year later, Keller was honorably discharged, sick and broken. He had a lung
ailment and was so crippled from arthritis in his hips that he could barely walk.

His pension record tells of his suffering. “His rheumatism is so that he is
unable to walk without the aid of crutches and then only with great pain,” it
says. His lungs and his joints never got better, and Keller never worked
again.

He died at age 41 of “dropsy,” which probably meant that he had congestive
heart failure, a condition not associated with his time in the Army. His
39-year-old wife, Otilia, died a month before him of what her death certificate
said was “exhaustion.”

People of Valentin Keller’s era, like those before and after them, expected
to develop chronic diseases by their 40’s or 50’s. Keller’s descendants had lung
problems, they had heart problems, they had liver problems. They died in their
50’s or 60’s.

Now, though, life has changed. The family’s baby boomers are reaching middle
age and beyond and are doing fine.

“I feel good,” says Keller’s great-great-great-grandson Craig Keller. At 45,
Mr. Keller says he has no health problems, nor does his 45-year-old wife, Sandy.

Read more of this article.

Medicare Beneficiaries Confused and Angry Over Gap in Drug Coverage

Posted on July 31, 2006 by Jason

The New York Times, July 30th, 2006

Tens of thousands of Medicare beneficiaries who signed up for prescription drug
coverage are paying monthly premiums, but Medicare is not paying any of their
drug costs because they have reached a gap in their coverage.

The gap, the notorious “doughnut hole,” is upsetting many beneficiaries, and
it has become a potent symbol as politicians debate the merits of the new
program.

Federal officials and outside experts say that 3 million to 3.5 million
people may fall into the gap this year, about half the number predicted. While
lawmakers and lobbyists were well aware of the problem, it is attracting fresh
attention because many beneficiaries are just now discovering it.

The original estimates assumed that people would sign up for drug coverage in
January, but many waited until April or May. They will file fewer claims than
expected and are therefore less likely to reach the gap in coverage this
year.

Read more of this Article.    Learn more about Medicare.

Negotiators Still Divided on Pensions Bill

Posted on July 28, 2006 by Jason

Forbes.com, July 27th, 2006

With one eye on the clock, congressional
negotiators labored Thursday to settle disputes standing in the way of
agreement on the most sweeping changes to the pension system in years.

House Majority Leader John Boehner, R-Ohio,
said there continued to be a House-Senate split on whether to attach a
package of popular federal tax breaks to the pension bill. Senate
negotiators want it on the bill, while House GOP leaders prefer a
separate tax bill linking the tax breaks to an estate tax cut that the
Senate has rejected on several occasions.

House and Senate staffers worked through the
night to draft language on the pension bill that would restructure, and
ideally restore financial integrity to, traditional employer-based
pension plans.

Lawmakers were reviewing that language
Thursday, acknowledging that they would have to reach an agreement
during the day if the House is to pass the bill before its planned
departure Friday for the month-long August recess. The Senate will be
in session one more week.

Read more of this article.

U.S. House Passes Bill to Relieve Senior Citizen Expenses

Posted on July 27, 2006 by Jason

Hawaii Reporter, July 27th, 2006

The U.S.
House today passed a bill that I co-sponsored to enable more senior
citizens to utilize their home equity toward health and other expenses
common to seniors.

Among other provisions, H.R. 5121, the Expanding American Homeownership
Act of 2006, facilitates the issuance of reverse mortgages, an
increasingly popular product with seniors. Reverse mortgages allow
homeowners to withdraw home equity for expenses while deferring loan
repayment until the owner dies or the home is sold.

The number of reverse mortgages insured by the federal government
nationwide more than doubled from 18,000 in 2003 to 43,000 in 2005, as
more and more seniors on fixed incomes have found these loans to be
extremely helpful in keeping up with medical costs, home improvement
costs, property taxes and other expenses,” said Case. “As of last
April, a total of about 200,000 such loans have been insured. This bill
will remove the statutory cap that has limited the Federal Housing
Administration (FHA) to insuring 250,000 reverse mortgages-a level that
will be reached next year.

The FHA’s reverse mortgage program enables homeowners who are at least
62 years of age to withdraw some of the equity in their home in the
form of monthly payments, in a lump sum, or through a line of credit.
This allows seniors to obtain a loan against their homes that does not
have to be paid back for as long as they live in the home. Under
current law, FHA is limited to a total of 250,000 such loans which
cannot be used to buy another home.

Read more of this article.    Learn more about Reverse Mortgages

Five Steps for Finding Your Post-Career Passion

Posted on July 27, 2006 by Jason

Yahoo Finance, July 27th, 2006

“Keep planting trees,” says Tom Pontac, 70, a Californian who has run over 150
marathons since turning 40, and just a few years ago completed his degree at
California State University at Long Beach. His point? You’re never too old to
start something new and watch it grow.

Pontac is an inspiration on two fronts. He’s past his physical prime, yet
he’s proving that natural, age-related decline in strength and conditioning
doesn’t have to be a steep drop-off. If you take care of yourself, it can be a
long, mild slope that leaves you fit and able to do just about anything you want
far longer than you might have figured.

Similarly, like Pontac, more people over 40 are going back to college or
fashioning some other formal learning experience. This boom in silver-haired
students is a boon for universities, their younger students, and the returning
adults, as educators have found that the insights and experiences older students
bring to the classroom invigorate discussions.

Tools to Pursue Your Passion

Nevertheless, you may not be clear on precisely how to make the most of your
later years. You may not have identified your passion, or determined what type
of late-life learning is right for you.

Read more of this Article.   Learn more about Working in Retirement.

Retirement Communities go Upscale

Posted on July 25, 2006 by Jason

Spas, fitness rooms, formal dining halls, and hefty entrance fees

Pittsburgh Post-Gazette, July 24th, 2006

The colorful, fold-out marketing brochure for Providence Point touts just about any amenity a former South Hills doctor, lawyer or business executive — and his spouse — could crave in a retirement community.

There’s the “stunning” foyer, “spectacular” landscaping and “elegant”
fountain, plus formal and casual dining rooms, fitness center and pool,
day spa, billiard room, on-site banking, surround-sound movie theater,
weekly housekeeping visits and “a wide range of cultural, recreational
and spiritual activities, all designed to help you stay fit for life.”

Another brochure from the developer, Baptist Homes of Western
Pennsylvania, gives the price tag for the plush, active living in 257
independent-living patio homes and apartments. Entrance fees range from
$163,200 to $624,000, and residents also make monthly payments that
start near $2,000 and can rise above $4,000 for the largest patio
homes. Those will be adjacent to assisted-living and nursing-home
facilities ready to accept residents when their health declines.

The new housing is to be available to affluent retirees by late 2008 on
the site where Allegheny County’s Kane Hospital once stood in Scott,
which at its end was denounced for warehouse-style care of indigent
seniors.

Read more of this article.

Move smoothly through phases of retirement

Posted on July 25, 2006 by Jason

Delaware Online, July 17th, 2006

If you retire at 65, there’s a chance your retirement will last more than 30
years. And that raises a lot of questions: What will you do with your time? Will
you stay in the same house? Will you become a Wal-Mart greeter at 85 because
you’ve run out of money? Even if you’re in your 40s, it’s not too early to start
making plans. Here is a road map that will help you navigate the five phases of
retirement.

Phase 1, 15 years prior to retirement: Make a financial plan

With 15 years to go before retirement, now’s the time to get your finances in
order.

“A lot of people just cross their fingers and hope they have enough to
retire,” says Peggy Cabaniss, chairman of the National Association of Personal
Financial Advisors.

You need a plan — and we mean more than a stack of 401(k) statements. If you
want help from a professional, ask yourself:

Read more of this Article.

Reverse mortgages offer added income, but they aren’t for everyone

Posted on July 24, 2006 by Jason

MySA.com, July 23rd, 2006

A brain tumor nearly derailed Ana Morlett’s retirement plans.

Talking and standing became so difficult for the language teacher that she
had to retire early two years ago, leaving her with just $1,400 a month in
income after 22 years of teaching.

It barely covered the $832 monthly mortgage payment on her three-bedroom
house.

Then Morlett heard about reverse mortgages, which let seniors tap the equity
in their homes but defer mortgage payments. She used one to pay off the $45,000
she owed on her house and to get $12,000 to make repairs.

“It wasn’t a lot, but with $1,400 there was no way I could make a house
payment and keep up with utilities,” said the 63-year-old. “Rent would have been
almost as much.

“This way, I no longer have a mortgage. I intend to live here until I die.”

Roughly 86,000 homeowners have tapped their equity through federally insured
reverse mortgages, according to the Federal Housing Administration.

Read more of this article.   Learn more about Reverse Mortgages.

Study: 43% not saving enough to retire well

Posted on July 24, 2006 by Jason
USA Today, June 6th, 2006

A new retirement study provides further evidence that a
growing number of Americans are at risk of a diminished standard of living once
they stop working.

The Center for Retirement Research’s new retirement-risk
index, released Tuesday, shows 43% of working households were in danger in 2004
of having too little income to fund their retirement.

But the study probably understates the proportion of
retirees at risk. Its projections assume that people retire at age 65, cash in
on their home equity through a “reverse mortgage” and exchange their assets for
a stream of income by buying an immediate annuity.

Yet many people retire before 65, according to the center,
and don’t necessarily buy immediate annuities or take out reverse mortgages. Nor
does the research take in account the “wild card” of health care costs — and how
these expenses will affect retirees’ standards of living, says Alicia Munnell,
director of the center at Boston College.

The percentage of “at risk” households has surged in the
past two decades, from 31% in 1983, according to the center’s analysis, which
was funded by Nationwide Mutual Insurance. Two factors that have raised the
risks are the growing uncertainty of Social Security payouts and the increasing
burden on employees to save for their own retirements.

Read more of this article.

It’s My Funeral and I’ll Serve Ice Cream if I Want To

Posted on July 20, 2006 by Jason

The New York Times, July 20th, 2006

ROBERT TISCH, who ran the Loews Corporation, had a marching band at his
memorial service and a packed house at Avery Fisher Hall, all orchestrated by
one of New York’s most prominent party planners. Estée Lauder’s had waiters
passing out chocolate-covered marshmallows on silver trays. At Nan Kempner’s
memorial, at Christie’s auction house, guests received a CD of Mozart’s
Requiem. Ms. Kempner had wanted a live performance of the Requiem, but the
logistics — full orchestra, chorus and soloists — were too much.

At a time when Americans hire coaches to guide their careers and retirements,
tutors for their children, personal shoppers for their wardrobes, trainers for
their abs, whisperers for their pets and — oh, yes — wedding planners for their
nuptials, it makes sense that some funerals are also starting to benefit from
the personal touch. As members of the baby boom generation plan final services
for their parents or themselves, they bring new consumer expectations and fewer
attachments to churches, traditions or organ music — forcing funeral directors
to be more like party planners, and inviting some party planners to test the
farewell waters.

The planning for most funerals still falls to the nation’s 22,000 funeral
homes, which bury more than 2 million Americans each year, at a price tag of $13
billion. But some families are beginning to think outside the box-provider, said
Mark Duffey of Houston, who last year began what he calls the first nationwide
funeral concierge service. For $995 or a monthly subscription fee, his company,
Everest Funeral Package, has helped several hundred families plan their final
rites, providing concierge services that range from writing obituaries to
negotiating prices with undertakers.

Read more of this article.

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